Recently in our campaign we ran into a ship captain named 'Peg-eyed Pete'. Yes, he had a wooden peg eye. It even points where he looks.
Only one person was willing to ask what everyone else wanted to. He got 10 extra experience for manning up.
Why a peg eye? He grabs the eye by the peg and pulls it out. 'It's easier to pull it out for cleaning.'

I was recently trying to decide on a name for a tiefling cleric I was making for PFS. My wife jokingly suggested Tumnus, after the physiologically-similar Narnian. I thought she said Thomas, and I haven't been able to think of him as anything else. So instead of a brooding, emo cliché of a tiefling with a name that has seven syllables and nine apostrophes, I've got a happy-go-lucky hero named Thomas. Hooray!

Dooney Brassfingers - swordmaster and mercenary, who later became known as Dooney the Penitent after he came to regret all the lives he had taken.
Grymhand the Grave - priest of Talos, minor adversary in a Forgotten Realms campaign.
Grenneth Redgard - assassin and bounty hunter.
Ranrath Minnith - mage come barkeep of the Restless Drake in Ordulin, creator and purveyor of interesting cantrips and minor magic of his own devising.
Nalocere the Quasit

I played with a guy in Missouri who told me of his Taldan character named "Pierre Saint Jacque, of the Brothers Saint Jacque *clap, clap.*" Seriously, whenever anyone said his name, EVERYONE at the table would clap twice.

Jiggy wrote:

So instead of a brooding, emo cliché of a tiefling with a name that has seven syllables and nine apostrophes, I've got a happy-go-lucky hero named Thomas. Hooray!

I look forward to a game teaming up your happy-go-lucky Tiefling cleric with my happy-go-lucky, adopted-by-Dwarves Aasimar cleric.

In a modern game I played a stage magician who called himself Torin the Improbable. He avoided saying his real name for as long as he was able (4+ months of real time) because it was so stupid sounding. It eventally came out (in forced tones) during an interrogation. Rudolph Jeremiah Cornpepper: merely saying it stopped the game for a quarter of an hour.

Other names that have been at the table in games I have played in.

Gamble, a hitman with an insanely high luck score who dressed like a wild west card player. Bonus points if you can guess what comic he was lifted out of, almost verbatim.

Skragmore the Orc, an alias of Flit the changeling in an Eberron game.

Two mafia hitmen named Rod and Reel, who specialized in mysterious sporting accidents. The boss they reported to was a police chief named Mr. Garibaldi.

A gnoll warrior named Grr. His crowning moment of funny was when we rescued a baby and no one knew what to do with it. "Grr know how take care of hooman baby! Some potato, some onion....."

One of the names that I'm most proud of was for my PC in the last campaign I played in before I started GMing again. It was in a 3.5 game set in a homebrew campaign world. (That GM is now one of my players.)

The character concept was a dark, brooding, and deadly fighter who was a minor nobleman whose father had squandered the family fortune. He possessed his grandfather's sword, rumored to have once been enchanted, but had lost its power in his grandfather's last great battle to save the Empire.

I created a fighter/aristocrat (yes, the NPC class, one level only), with a modified version of the Ancestral Weapon feat from the Book of Exalted Deeds. The weapon was Kal-Therral, or "Bloodblade" in Abyssal, a bastard sword made of abyssal bloodiorn. The sword had red vein-like streaks throughout its dull black blade that glowed like a candle with dull red light, but increased its brightness to that of a torch for an hour after drawing blood from an enemy.

I had a character named Westley Roberts, you know the Dread Pirate?
The funny thing was we had a player whose last name was Roberts, too (I hadn't known until we introduced our characters).
He didn't think it was funny, but everyone else got a kick out of it.

Brothur Portillias - Think Friar Tuck with an Irish Accent and no it is not Brother. He loved food, drink and was always looking for the positive in everything. "Oh the Earth Mother she givith and she takith away" As he stuffed his face with food and drink

Maseco Ipetwha - Thief, Rogue, Dandy, general all around ladies man

Arylana Boldtalon - CG but had a strong dislike for non-humans... any non-humans

I played a Sarenrae cleric from Absalom named Borrachio. He talked like a surfer, or like Keanu Reeves playing a surfer.

Played a dhampir inquisitor of Sarenrae named Beruso Arsbeta. He was named after a long-dead vampire and his long-dead victim, both detailed in Rule of Fear. He considered himself to have tenuous ties to the Ustalav Arsbeta family line.

I like the last names Ghoulfoe and Ghoulkin. I rolled a character back for 3.5e named Ghoulfoe.

On the day we made characters, I think one of my players was really mailing it in when he named his Human Bard 'Barman Hurd'. He probably regretted it after he'd been playing with the same character for two and a half years. In fact, that was the longest living character in any campaign I've ever run or played in.

Shuriken Nekogami; generic insert small framed japanese female badass in a black kimono here. could be anything from an inquistor to a rogue with no issue as long as it has reasonable combat ability, improved unarmed strike, and a dagger.

Lumiere Argence Solaras Dawnbringer (AKA Lumi) Ditzy celestial blooded spontaneous healer that does tournament fencing on the side, carries a sabre and usually plays the role of Umbri's Cohort in a Twin Ensemble.

Countess Umbriere Nera Nox Astrum Lunas Moonwhisper, Heir of Count Maximilian Moonwhisper (AKA Umbri) could be anything that combines face with arcane spells and some rogue skills. whether bard, beguiler, or arcane trickster, focuses on illusions/enchantments/buffs and cannot fight her way out a paper bag and has dumped constitution/strength. she usually picks up Lumi as a cohort ASAP and joins the moment the leadership feat becomes available. has ties to the plane of shadow.

those 3 characters i enjoyed and were pretty much my first 3 freeform OCs from elementary school i could never get over. these were my favorite characters (not just in name). the names i typically recycle when i happen to be in a hurry.

other characters i enjoyed

Ulgar "the Horrid" "Bastard King of the Mountains." "Fiend of the Asylum" a dwarven barbarian who tears his victims apart with his sheer savagry and brutality. his name was fun to say.

Miyabi "Rex" Kobayashi, i like calling her Rex and the group makes Rex Racer Puns. she is an unarmed savage who seeks to perfect herself by becoming the newest and strongest spawn of Rovagug.

Conflitta; Italian for conflict. a blonde with Heterochromia Iridium. she was intended in her freeform incarnation to be the stepdaughter of Janus. her pathfinder counterpart is a descendant of Ymeri, elemental lord of fire and queen of the inferno.

Recently in our campaign we ran into a ship captain named 'Peg-eyed Pete'. Yes, he had a wooden peg eye. It even points where he looks.

Only one person was willing to ask what everyone else wanted to. He got 10 extra experience for manning up.
Why a peg eye? He grabs the eye by the peg and pulls it out. 'It's easier to pull it out for cleaning.'

Waaaaaaaay back in the day (Sherman, go set the WAIBAC machine!) I had a mutliclass elven thief/mage from Waterdeep who only referred to himself as "Lyrarenil of Waterdeep, The Cosmopolitan Center of the Realms". And he said it with as much flavor as possible. When made to wear a new cloak purchased (at great expense) from a vendor in Baldur's Gate he only ever held it with one finger and thumb, and referred to it as "*That* horse blanket from Port Drudge."